The Best Valuation Measures Say The Stock Market Is In Fair-Value Territory

Nothing bubbly about this.Dr. Ed's BlogThere are plenty of other P/Es that have more historical data, though they tend to be quarterly rather than daily/weekly/monthly as is the forward P/E of the S&P 500, which is our preferred measure of valuation. As of Q3, the market capitalization of equities was 14.7 times corporate profits, not much higher than the average since 1960. Tobin's "q" measures the market value of nonfinancial corporations relative to their replacement cost. During Q3, it was equal to 1.0, which is in fair-value territory.